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City of York Council |
Committee Minutes |
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Meeting |
Shareholder Committee |
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Date |
19 March 2024 |
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Present |
Councillors Lomas (Chair) and Douglas |
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In Attendance |
Councillor Ayre (Leader of the Lib Dem Group) |
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Officers Present |
Patrick Looker, Head of Service Finance Helen Whiting, Head of Human Resources and Organisational Development Andy Laslett, Strategic Services Manager Dan Moynihan, Senior Solicitor |
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External Visitors |
Sandy Boyle, Managing Director (Yorwaste Ltd) Karen Bull, Managing Director (City of York Trading Ltd) Sarah Loftus, Managing Director (Make It York) Tony Spinks, Head of Finance (Make It York) Max Thomas, Chief Executive (Veritau Limited) |
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23. Declarations of Interest (16:31)
Members were asked to declare at this point in the meeting any disclosable pecuniary interests or other registerable interests they might have in respect of business on the agenda, if they had not already done so in advance on the Register of Interests. None were declared.
24. Minutes (16:31)
Resolved: That the minutes of the last meetings held on 23 October 2023 and 19 December 2023 be approved and signed by the Chair as a correct record.
25. Exclusion of Press and Public (16:31)
Resolved: That the press and public be excluded from the meeting during any discussion arising on the following items:
· Agenda Item 5 (Yorwaste Ltd Finance Update), Confidential Annex B; Agenda Item 6 (Make it York Business Plan), Confidential Appendices 1-4; and Agenda Item 7 (Veritau Limited Finance and Business Plan), Confidential Appendices 1 and 2 on the grounds that they contain information relating to the financial or business affairs of any particular person (including the authority holding that information). This information is classed as exempt under Paragraph 3 of Schedule 12A to Section 100A of the Local Government Act 1972, as amended by the Local Government (Access to information) (Variation) Order 2006.
· Agenda Item 6 (Make it York Business Plan), Confidential Appendix 7 on the grounds that it contains information relating to any individual, information which is likely to reveal the identity of an individual, and information relating to the financial or business affairs of any particular person (including the authority holding that information). This information is classed as exempt under Paragraphs 1, 2 and 3 of Schedule 12A to Section 100A of the Local Government Act 1972, as amended by the Local Government (Access to information) (Variation) Order 2006.
· Agenda Item 8 (City of York Trading Ltd Business Plan), Exempt Annexes A and B on the grounds that they contain information relating to the financial or business affairs of any particular person (including the authority holding that information) and information relating to any consultations or negotiations, or contemplated consultations or negotiations, in connection with any labour relations matter arising between the authority or a Minister of the Crown and employees of, or office-holders under, the authority. This information is classed as exempt under Paragraphs 3 and 4 of Schedule 12A to Section 100A of the Local Government Act 1972, as amended by the Local Government (Access to information) (Variation) Order 2006.
26. Public Participation (16:33)
It was reported that there had been no registrations to speak at the meeting under the Council’s Public Participation Scheme.
27. Yorwaste Ltd Finance Update (16:33)
Members considered a report providing an update on the performance of the company. The Managing Director of Yorwaste provided an overview, drawing attention to improvements in health and safety, a good fiscal performance over the year, and the company’s green rating in all categories in a recent shareholder review by North Yorkshire Council (NYC) to measure compliance against the CIPFA best practice guidelines for Local Authority Owned Companies. It was confirmed that a decision on the Harewood Whin solar project was expected to be made by CYC planning in May, and that fleet decarbonisation options were being reviewed as part of a wider project with NYC. A marginal profit was anticipated for the next financial year despite the impact of wage inflation and an expected drop in landfill gas revenues. The company expected to meet its capital expenditure over the next three years without recourse to the shareholding authorities.
In response to questions from the committee it was confirmed that challenges were presented by a lack of clarity in government policy relating to both simplified recycling and extended producer responsibility for packaging. It was also confirmed that an emphasis on front-end messaging to communicate with staff had had a significant impact in improving safety, which remained the company’s top priority.
Resolved:
i. To note the reports from Yorwaste Ltd attached at Annex 1 and Confidential Annex 2 to the report.
ii. To approve the Yorwaste Business Plan for 2024/25 attached as Confidential Annex 2 to the report.
Reason: To ensure the Council was updated on the financial performance of Yorwaste Ltd.
28. Veritau Limited Finance and Business Plan (16:42)
The Chief Executive of Veritau Limited provided the committee with an update on the company’s performance since October 2023. The company had gained several new clients including academy school trusts, and recruitment of trainees continued with three trainees recently completing professional qualifications. A new audit management system was being implemented and work was being done to further develop the company’s social value position including confirming the commitment to be a Disability Confident employer. Regarding financial performance, net profit before tax was in line with expectations. It was noted that discussions had taken place with several councils wishing to join Veritau, with two formally requesting this; this would require structural changes to ensure a sustainable model which protected the interests of the existing member councils.
In response to questions from the committee it was confirmed that any such changes would require approval from both City of York Council and North Yorkshire Council, and that the Executive, rather than the Shareholder Committee, was the appropriate body to consider this. It was also noted that a project group was exploring options for the use of AI for some aspects of the company’s internal audit work, and that it was important that both the risks and potential benefits of this technology were fully understood.
Resolved:
i. To note the Group’s performance since the last business update report in October 2023;
ii. To approve the 2024/25 business plan;
iii. To note the proposed expansion of Veritau.
Reason: To ensure the Council was updated on the performance of Veritau Limited.
29. Shareholder Committee Work Plan 2024-25 (16:51)
Members considered the committee’s work plan for the next municipal year.
Resolved: That the committee’s Work Plan for 2024/25 be noted.
Reason: To ensure the committee received regular reports in accordance with the functions of an effective Shareholder Committee.
30. Make it York Business Plan (16:51)
Members considered an update from Make it York presented by the company’s Managing Director and Head of Finance. It was noted that the company had performed strongly since the last update to the committee, winning several awards, while visitor numbers and web statistics had been strong for events including the St Nicholas Fair Christmas Market, Residents’ Festival, Haunted York campaign, Ice Trail and Snooks Trail. Membership retention was high at 84% and events for members including a sold-out conference had proven successful. Governance had been improved with a stronger focus on outputs and member feedback, while finances had also improved despite a challenging year, with year-end profit higher than expected.
In response to questions from the committee it was noted that Visitor Pass figures were lower than last year for several reasons including strong post-Covid performance in 2022-23, the impact of bad weather and industrial action on the railways, and lower investment in pass marketing. Investment in promoting the pass was due to be increased this year, and new ways of incentivising use of the pass were being considered. Clarification on the figures in Annex A for Airbnb listings in the city would be provided to members.
The committee also offered congratulations to the Managing Director on the receipt of a Lifetime Achievement Award at the Yorkshire Businesswoman Awards.
[Between 17:04 and 17:29 the press and public were excluded from the meeting during consideration of Confidential Appendices 1-4 and 7 to the report].
Resolved:
i. To note the MIY Shareholder Report at Annex A and the supporting documents from Appendix 1 to Appendix 7 supplied by MIY.
ii. To approve the Annual Business Plan (Service Delivery Plan) at Appendix 5;
iii. To approve the appointment of the new Board Non-Executive Director.
Reason: To ensure the Council is updated on the financial performance of MIY and approve the business plan and new Board Non-Executive Director.
31. City of York Trading Ltd Business Plan (17:30)
The Committee considered an update comprising the company’s Business Plan and Implementation Project Plan presented by the Managing Director of City of York Trading Ltd (CYT).
[Between 17:34 and 18:05 the press and public were excluded from the meeting during consideration of Exempt Annexes A and B to the report].
Resolved:
i. To approve the CYT Business Plan for 2024/25 at Exempt Annex A.
Reason: To enable the CYT Board of Directors and staff to execute strategies for the growth of the Company’s non-Council recruitment business.
ii. To approve the Implementation Project Plan at Exempt Annex B.
Reason: To ensure that Public Contract Regulations compliance can be maintained for the supply of temporary staff to the Council of the City of York.
Cllr K Lomas, Chair
[The meeting started at 4.31 pm and finished at 6.06 pm].